UrClimate under the control of Allianz for Meteorological Risks!
Allianz Turkey – Allianz Technical and Risk Engineering
In today’s conditions, risk management is an inevitable process for a business to continue its existence in a healthy manner. Companies that are aware of their risks and are prepared in advance are minimally affected by the risks that occur. If one is not prepared for these risks, they can turn into crises threatening the organization when they occur. Crises can emerge anywhere, anytime, and for numerous reasons. They disrupt normal business operations and have the potential to damage reputation. Considering the effects of the situation, all these can result in disaster for companies.
“The further improvement of the existing infrastructure in decision-making based on data in risk analysis is an inevitable necessity for us,” said the managers of the Allianz Turkey Risk Engineering Department, expressing the importance of this issue from their perspective. They shared how they turned the data provided with the “UrClimate Risk Score” into a valuable asset:
The foundation of our work in the insurance sector is based on risk management. Therefore, as a sector, we look at potential risks with a long-term perspective and are always prepared for measures to be taken before risks occur. In Allianz Turkey, we examine how measures are taken against risks such as earthquakes, floods, storms, and hail, especially in corporate facilities, through both field visits and within the framework of standards. After these evaluations, we work together to mature additional measures to minimize our clients’ risks.
In this regard, we perform risk assessments based on many national and international sources to determine the risks of investment areas. Understanding the risks that institutions face in the face of disasters is essential for making the right decisions. It is now observed concretely that various processes, including climate change and global economic development, create interconnected new risks. The increase in global climate change and related natural disasters is closely related to the insurance sector. According to the World Economic Forum’s 2020 Global Risks Report, the top 5 risks highlighted based on the probability of occurrence are all related to the environment and climate change. Climate change is also among the top 10 risks in the Allianz 2021 Risk Barometer, which examines the biggest risks in the business world.
At this point, being able to read weather data concretely in terms of risks brought or to be brought by climate change provides an advantage in risk assessment. The “UrClimate Score” we prefer uses risk score data and risk maps prepared with historical hourly weather data for many years, providing an innovative and complementary data platform. This application allows us to see risk scoring for various weather conditions such as hail, precipitation amount, and lightning across the entire country, by location, month, and year, allowing us to anticipate how the change will evolve in the coming years by looking at trends. For example, knowing the wind potential of a wind farm investment is as critical as determining the risks of weather conditions other than wind for the field, as it affects credit opportunities and return periods. Knowing the intensity of lightning in a location will provide confidence in making healthy decisions in policy fees and investments. As important as such issues addressed in collaboration with the investor, conveying the responsibility to reinsurance companies through risk maps presented with a scientific infrastructure includes advantages in facing potential threats. We believe that with the high-resolution database provided, it will be possible to detect risks based on weather conditions down to the street detail over time.
As Allianz Turkey, who is always with our customers, we have accelerated our consultancy services to reduce our customers’ risks with the ‘Allianz Technical’ Earthquake and Fire Test and Training Center. In our center, which we see as an important step in increasing social risk awareness in Turkey and protecting our national wealth, information activities are carried out against earthquakes and fires. Industry-specific earthquake and fire tests are conducted, and professional risk consultancy services are provided. Collaborations with Allianz Technical will provide resilience and stability, first to the institutions we support and then to all producers and operators in the industry.